Correlation Between Permanent TSB and Banco Santander
Can any of the company-specific risk be diversified away by investing in both Permanent TSB and Banco Santander at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Permanent TSB and Banco Santander into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Permanent TSB Group and Banco Santander Mxico, you can compare the effects of market volatilities on Permanent TSB and Banco Santander and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Permanent TSB with a short position of Banco Santander. Check out your portfolio center. Please also check ongoing floating volatility patterns of Permanent TSB and Banco Santander.
Diversification Opportunities for Permanent TSB and Banco Santander
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Permanent and Banco is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Permanent TSB Group and Banco Santander Mxico in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco Santander Mxico and Permanent TSB is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Permanent TSB Group are associated (or correlated) with Banco Santander. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banco Santander Mxico has no effect on the direction of Permanent TSB i.e., Permanent TSB and Banco Santander go up and down completely randomly.
Pair Corralation between Permanent TSB and Banco Santander
If you would invest (100.00) in Banco Santander Mxico on September 1, 2024 and sell it today you would earn a total of 100.00 from holding Banco Santander Mxico or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Permanent TSB Group vs. Banco Santander Mxico
Performance |
| Timeline |
| Permanent TSB Group |
| Banco Santander Mxico |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Permanent TSB and Banco Santander Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Permanent TSB and Banco Santander
The main advantage of trading using opposite Permanent TSB and Banco Santander positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Permanent TSB position performs unexpectedly, Banco Santander can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Banco Santander will offset losses from the drop in Banco Santander's long position.| Permanent TSB vs. Bank Mandiri Persero | Permanent TSB vs. Piraeus Bank SA | Permanent TSB vs. Kasikornbank Public Co | Permanent TSB vs. Turkiye Garanti Bankasi |
| Banco Santander vs. Permanent TSB Group | Banco Santander vs. Bank of Botetourt | Banco Santander vs. Caixabank SA ADR | Banco Santander vs. Hang Seng Bank |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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